The Vital Few vs. the Trivial Many : Invest with the Insiders, Not the Masses

By George Muzea

Book Overview

Filled with in-depth insight and expert advice, The Vital Few vs. The Trivial Many will open your eyes to a new way of looking at the investment world, especially the stock market. You'll discover how to look past media hype to discern what the Vital Few or corporate insiders--those who know their companies best--are doing. By explaining which information is accurate and valuable, as opposed to that which is misleading and financially hazardous, investment professional George Muzea will show you how to successfully and intelligently evaluate the stock market and find valuable gems that have yet to be discovered by the masses.

• Format: Paperback
• Language: English
• ISBN: 0471681954
• ISBN13: 9780471681953
• Release Date: October 2004
• Publisher: Wiley
• Length: 224 Pages
• Weight: 0.66 lbs.
• Dimensions: 0.6" x 6.1" x 9.1"

Customer Reviews

Rated 6 STAR

Most of the professionals and causal investors are still trying to find a proven mathematical formula or technical system to make money in the financial market. You will be disappointed if you are trying to do the same with any books. When it comes to investing, I don't think such a formula or system exists. Just look at how Nobel Prize winner and "genius" failed at LTCM. Human nature plays a key role in the financial market, and we are far form coming close to develop a mathematical model in human thinking. Thinking participants keep the rule of the game changing. Therefore, the only certainty is change. The key objective of this book is to present a systematic approach to improve our probability of success in identifying safe entry and exit points in the financial market. We have to bear in mind that the method only enhances our probability of success, but there is still no certainty. With the help of Muzea's methodology, I identified an opportunity to short Euro in March 2005, I cashed out a large part of my energy position when oil hit $70 in Sept 2005, and I stayed away from the stock market during brutal correction in Oct 2005. The tax loss buying strategy in Appendix B also helped me to make a quick 7% profit between Oct and Nov of 2005. I think the result speaks for itself. All I did was to find out if there were divergences between the actions of the Vital Few (insiders) and that of the Trivial Many (masses). Information is always in the divergences. The Magic T method highlights in Chapter 8 also helped me to make career decisions. The essence of Magic T method is to remove emotional influence when it comes to decision making, be it financial, business or personal. I just wish my father had taught me this method 20 years ago. I personally have a few emails exchange with George Muzea. He has a genuine interest in helping financial novice like me to become a better investor. I think he is a noble man. The money I invested in this book has paid off a thousands time over in a matters of months. I have read over 100 books in investment, but this one comes at the top of my list. I actually re-read the whole book every few months to refresh my memory. I want Muzea's wisdom to be ingrained in my mind so that it becomes automatic. I just ordered a spare copy as my old one has worn out a bit. Unfortunately, it does not come with a hardcover edition. Muzea's wisdom is timeless and an all-time classic book! I rated it a 6 Star.

Excellent

Why do so many people lose money in the stock market? It's really simple, they don't read and study books like this one that give such logical and simple advice. The average person simply doesn't spend the time to understand what they are doing and many of those that follow the markets more closely get overly optimistic and allow emotion to take control. Mr. Muzea writes in a basic and easy to understand style and includes many short anecdotal stories to flavor and explain his reasoning. I found the book to be forthright and entertaining. His basic premise is that large investing insiders can give huge clues to the over or under valuation of a stock and by following their lead, along with some basic technical analysis one can greatly increase his chances of selling near tops and buying near bottoms. He runs a service and newsletter that gives up to date information and advice, however I didn't feel like this book was at all a selling tool for his service (like I've found in some other investment type books). This book can stand on its own and one quick reading can easily make an investor money and/or save an investor from loss. The author has developed a method he calls the "Magic T" it's not a hocus pocus for divining what stocks will win and which will lose, but rather a basic decision making device (much like a pro and con sheet that is a bit more advanced). How he applies this to investments is, by its self, well worth the price of the book. All in all I give a strong recommendation for this book to any investor or trader that is looking to improve their profits as well as to any that are considering entering the market for the first time.

For Contrarian Investors, A Timing Strategy That Works

I first heard George Muzea describe his techniques as a guest Market Monitor on Nightly Business Report with Paul Kangas (on PBS). I was intrigued enough to write down the name of the book (1st version) and ordered it a little while later (Fall of 2003). The book was short, concise, but powerful in its assertions (I have since ordered and read the revised edition which includes additional information on combining technical analysis with this strategy). I tracked many former high flying stocks into the depths of 2002-early 2003 and later was dismayed at a few really great buying opportunities missed as many stocks bottomed out. While other reviewers have noted that George Muzea used his Magic T technique to suggest a great buying opportunity there, what was more revealing about this strategy was looking back into the chart data and insider trading activity from 2002-2003 and finding the specific types of insider buying evidence to support signaling some exceptional gains in many issues. Making profitable use of this strategy requires hard work, study and patience (like anything worthwhile). Don't confuse this for a simple insider trading recommendation service. If you have the time and ability to learn to do this yourself, understanding and using Mr. Muzea's techniques, as detailed here, can prove very rewarding.

This is a must read

I bought George's first edition as well as this one, in my view his book is a must read for any one who want to manage his/her own money. If you follow his advice, you will have a much greater chance to pick a winner. I couldn't tell you how much more confident I have gained from this book. It is day and night. The title of the book said it all.

And They Say It Is Impossible To Time The Market

I am a financial advisor. I was taught that no one can time the market. George Muzea is the exception. His book will teach you how to do it, too. Buy-and-hold and dollar-cost-averaging are winning strategies over the long term for busy people. But if you have time to actively manage your stock, ETF, or mutual fund portfolio, George Muzea's market timing approach is much more profitable. A bear market will drag down the best of stocks--even those with insider buying. Why ride the market up and down when you could be selling near the top and buying back in at or near the bottom? Wouldn't you rather be making money from "day 1" when a bull market begins, rather than trying to get even because you rode the bear market down? Why make 30% one year and lose 40% the next year? George Muzea's book teaches you to recognize when a bull market is transforming into a bear market and vice versa. Readers are lucky he is willing to share what he has learned over a lifetime rather than keeping it to himself. If you don't want to lose your posterior in the market, read this book.